April industrial indicators have turned to a downward trend once again. Production, consumption, and investment have all decreased, marking a 'triple decline' for the first time in three months since January. Along with sluggish manufacturing in sectors such as semiconductors and automobiles, domestic consumption also appears to be weakening.
According to the 'April 2025 industrial activity trend' reported by the Statistics Korea on the 30th, the production index for all industries (2020=100, seasonally adjusted and excluding agriculture, forestry, and fishery) was recorded at 113.5. This figure represents a 0.8% decrease from the previous month, marking the largest decline since January (-1.6%). Production decreased across all institutional sectors, including mining and manufacturing, services, construction, and public administration.
Production in the mining and manufacturing sector dropped by 0.9% compared to the previous month, with manufacturing experiencing declines in automobiles (-4.2%) and semiconductors (-2.9%), resulting in an overall decrease of 0.9%. The decline in automobile production marks the first drop in five months since November of last year (-6.6%). The semiconductor production was analyzed to be impacted by a base effect from the prior month (March), when production surged due to end-of-quarter effects.
Lee Du-won, a Deputy Director General at Statistics Korea, explained, "In the case of primary metals like steel and aluminum, production actually increased in April due to the impacts of strikes and facility maintenance in March; however, automobile production decreased, particularly for eco-friendly vehicles and specialized vehicles."
Consumption and investment have also declined, bringing a halt to domestic consumption. The retail sales index, which indicates the consumption of goods, decreased by 0.9% from the previous month. Sales fell across all categories, including semi-durable goods like clothing (-2.0%), durable goods like communication devices and computers (-1.4%), and non-durable goods like food, beverages, and medicines (-0.3%). Retail sales have now declined for two consecutive months following March's drop (-1.0%).
Production in the service sector, which reflects service consumption, also declined by 0.1% compared to the previous month. The retail and wholesale (+1.3%) sector experienced growth due to the effects of new car sales and discounts on cosmetics at duty-free shops; however, declines were observed in the professional, scientific, and technical (-3.6%) and financial and insurance (-1.2%) sectors.
Investment in equipment decreased by 0.4% compared to the previous month, influenced by a drop in the machinery (-4.5%) sector. In contrast, investment in transport equipment, such as automobiles, increased by 9.9%. Construction output (constant) fell by 0.7%. While the civil engineering (6.6%) sector grew, the decline in building (-3.1%) performance impacted overall results. Both equipment investment and construction output have decreased for two consecutive months.
Despite the decreases in production, consumption, and investment, the composite index reflecting economic activity continued to show an upward trend. The coincident composite index's cyclical fluctuating value rose by 0.2 points from the previous month, while the leading index's cyclical fluctuating value increased by 0.3 points.
Deputy Director General Lee Du-won noted, "The major indicators for April displayed an overall downward trend amid increasing domestic and external uncertainties and delays in the recovery of consumer sentiment, compounded by sluggishness in the construction industry."